Hey guy, I'm new to the forum (so be gentle!!).

 

I'm looking to find out if late payments from clients are an issue for you? In particular, I'd like to find out the following:

 

 

1) As a freelancer/contractor, when do you get paid by the client? What are your invoice terms?

 

2) Do clients ever impose payment terms on you?

 

3) In terms of cash-flow, are long payment terms ever an issue?

 

4) In terms of cash-flow, are late payments ever an issue?

 

5) Is chasing payments (credit control) ever an issue for you as a freelancer?

 

6) Do you currently use any methods of credit to cover cash-flow issues caused by long/late payment? (I.e. Overdrafts, credit
cards, a loan facility)

 

 

Cheers guys, I'd love your feedback on the issue and i'd really appreciate any help!

 

 

Paul

Hi and welcome

About your questions...i'll give you example from my personal experience:

1) I'm using online invoicing tool like Freshbooks, and invoice my clients at the end of each month. All invoices must be paid due 30 days.

2) Nope.

3), 4) Usually no, but if the client is new, I demand 50% prepayment of the agreed fixed amount for the project (this is only for the first project or the first 2 projects, after that the client may pick to pay per project - fixed amount or per hour).

5) With every new client there is a risk (this is the reason to want 50% prepayment). Most of the problematic clients i was dealing with are from US and Turkey.

6) Like most of the freelancers i have a reserve for cases like these (late payments/months with low qt of orders).

Hi Paul,

 

1) As a freelancer/contractor, when do you get paid by the client? What are your invoice terms?

 

I set payment terms requirements in my contract, depending on the value of the project it will either be 50% upfront and 50% on completion or 25% upfront with 3 further milestones. Invoice terms are generally 30 days from the date of the invoice.

2) Do clients ever impose payment terms on you?

Some larger clients do if their company has stricter payment terms but as long as I'm made aware of those before the project starts I'm generally fine with it.

3) In terms of cash-flow, are long payment terms ever an issue?

Not as long as the project in broken down in such a way that I would still be getting paid while the project is on-going

5) Is chasing payments (credit control) ever an issue for you as a freelancer?

It can be, there's been occasions where I've had to chase money and threaten to either remove the website or threaten legal action. I've recently written in a late-fee penalty into my freelance contracts to help control late payments.

6) Do you currently use any methods of credit to cover cash-flow issues caused by long/late payment? (I.e. Overdrafts, credit
cards, a loan facility)

I've never and wouldn't ever use any form for credit facility, as you'd constantly be chasing your tail trying to pay back other people - at all times I try to keep at least 3 months or so worth of money in reserve for all the everyday things such as rent, bills, food etc in case of any delayed or late payments.

Edited February 18, 201412 yr by Bobby Anderson